Vodafone Group Plc (Vodafone) announced the completion of its placing of 79.2 million shares in Indus Towers Limited (Indus Towers), representing 3.0 percent of Indus' share capital. The placement, completed on December 5, 2024, raised Rs 28.0 billion (USD 330 million), Vodafone said on Friday.
Also Read: Vodafone Group to Exit Indus Towers by Offloading Remaining 3 Percent Stake
Loan Repayment and Stake Acquisition in Vi
Of the proceeds, Rs 8.9 billion (USD 105 million) was used to repay outstanding borrowings to Vodafone's existing lenders, secured against Vodafone’s Indian assets and to cover transaction fees. The remaining Rs 19.1 billion (USD 225 million) was used to acquire 1.7 billion equity shares in Vodafone Idea Limited (Vi), raising Vodafone's stake in Vi to 24.39 percent from 22.56 percent.
The acquiring entities in Vi were Omega Telecom Holdings Private Limited and Usha Martin Telematics Limited, Vodafone said.
Settles MSA Dues to Indus Towers
Vi used the funds to settle its Master Service Agreement (MSA) dues to Indus Towers, allowing Vodafone to fully meet its financial obligations to Indus under the Security Arrangements.
"Vi have used the proceeds from this Capital Raise to pay outstanding Master Service Agreement (MSA) dues to Indus. Following this, Vodafone's obligations to Indus under the Security Arrangements have now been satisfied in full," Vodafone said on Friday.
Also Read: Vodafone Idea Board Approves Preferential Issue to Raise Rs 1,980 Crore
Security Arrangements
According to the official release, under the terms of the security arrangements between Vodafone and Indus, Indus had security over the residual proceeds from the placing (after repayment of Vodafone's outstanding borrowings) to guarantee obligations from Vi to Indus under the MSAs.
